Posts Tagged ‘Carolinas HealthCare System’


FOI Daily Dose: Judge dismisses North Carolina public records lawsuit for confidential settlement; Pennsylvania considers changes to Right-to-Know law

Judge dismisses N.C. public records lawsuit against hospital chain for confidential settlement

A Superior Court judge dismissed the lawsuit a Charlotte attorney filed against one of the nation’s largest public hospital chains for violating the North Carolina public records law, according to The Charlotte Observer.

Superior Court Judge Robert Sumner ruled that the hospital chain, Carolinas HealthCare System, can legally keep a confidential settlement from its 2008 lawsuit against the former Wachovia Bank (see previous post).

Since the hospital chain’s board of directors made the settlement in a closed session and kept it confidential, attorney Gary Jackson filed a public records request to inspect it and ensure it’s fair.

In a hearing last week, attorneys for Carolinas HealthCare argued that the hospital chain can legally withhold the settlement because the state’s public records laws has many holes.

But Jackson said legislators never intended the law to allow confidential settlements in lawsuits involving government agencies, so he plans to appeal Sumner’s ruling to the N.C. Court of Appeals, according to The Observer.

The Observer notes that former state Senator David Hoyle who sponsored most North Carolina public records laws, agrees with Jackson.

“The intent was that if it becomes a court case, the results of the settlement were to be made public,” Hoyle told The Observer.

Pennsylvania considers changes to Right-to-Know law

As Pennsylvania lawmakers weigh a series of potential changes to the state’s 5-year-old Right-to-Know law, the head of Pennsylvania’s open records agency is telling them to proceed with caution, according to NewsWorks.

The Senate is considering one piece of legislation to address problems with the state’s open records, and the House has at least 10 different proposals.

But Terry Mutchler, director of the Office of Open Records, told NewsWorks some of the changes proposed in the name of open government could deny certain populations, such as prison inmates, the right to access information and exempt information from public requests.

“While the intent is good, I have some concerns with the results,” Mutchler told NewsWorks.

But until the legislature decides to change Pennsylvania’s Right-to-Know law, a recent Commonwealth Court decision could mean more access to information from state-related universities, according to Watchdog News.

In the case of Ryan Bagwell v. Department of Education, Bagwell, a Penn State alumnus, requested information about the Jerry Sandusky investigation, including emails, letters, reports and memos sent to then-Secretary of Education Ron Tomalis. The Commonwealth Court decided since the records are part of the education secretary’s job dealing with state-related universities, they should be released, Watchdog News said.

Mutchler expects the decision to have a “domino effect” on similar cases, and she expects the state to expand the Right-to-Know law for state-related universities.

“I am grateful the Legislature took its time with deciding this question, because it has to be done right, and it has to be done well, and the implications of it have to be thought through,” Mutchler told Watchdog News.

Kara Hackett is SPJ’s Pulliam/Kilgore Freedom of Information intern, a freelance writer and a free press enthusiast. Contact her at khackett@spj.org or on Twitter: @KaraHackett.

FOI Daily Dose: Attorney sues Carolinas HealthCare System for withholding confidential settlement

A Charlotte attorney is suing Carolinas HealthCare System for allegedly violating the state’s “sometimes-ambiguous” public records law by keeping a settlement confidential, according to The Charlotte Observer.

Attorney Gary Jackson is arguing that Carolinas HealthCare has no legal right to keep its settlement confidential, and he’s asking for a court order to force disclosure of the document so he can see if it’s fair.

Carolinas HealthCare won the confidential settlement in a court complaint in 2008 against the former Wachovia Bank. The hospital system said the bank broke its promise to put the hospital’s money in low-risk investments. One of their investments fell from about $15 million to $1.8 million, according to The Observer.

The hospital system’s board of directors in 2011 went into a closed session to approve the settlement, but they kept it confidential and refused to provide copies of the agreement.

Jackson and Carolinas HealthCare representatives came before a Superior Court Judge this week in a hearing to present their case.

The hospital is motioning to dismiss Jackson’s suit because the public records law does not explicitly say suits filed by a government agency are public records.

Mark Merritt, a lawyer representing the hospital system, said public disclosure could cost public bodies more money. He argued that the settlement falls through one of the public records act’s many loopholes because the law only requires public release of “any suit, administrative proceeding or arbitration instituted against any agency of North Carolina government.”

“I describe (the public records act) as a Swiss cheese,” Merritt said at the hearing. “It’s got a lot of holes in it.”

Jackson agreed the law does have holes, but said he doesn’t believe confidential settlements in lawsuits filed by public agencies should be allowed to slip through and evade the public eye.

“It’s a public body and there needs to be that transparency,” he said.

Jackson said even though Carolinas Healthcare is the largest employer in Mecklenburg County, it is “not known for transparency.”

Carolinas HealthCare system is a public, tax-exempt hospital, but Mecklenburg County officials have criticized it for acting more like a private organization than a public one, The Observer reported.

The Observer lists a series of speculative open records and open meetings violations committed by the hospital, including failing to share data about a county-owned psychiatric hospital, not inviting the public to quarterly board meetings and not providing The Observer with its administrative expenses.

Kara Hackett is SPJ’s Pulliam/Kilgore Freedom of Information intern, a freelance writer and a free press enthusiast. Contact her at khackett@spj.org or on Twitter: @KaraHackett.

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